kaal:claim:3782210-022

Because eternally perfect protocols are impossible, as illustrated by Arrow's Impossibility Theorem and the Folk Theorems of Game Theory, the remedy is not a better static ruleset but a system that continually improves its protocols and smart contracts in reaction to market change.

The impossibility of creating eternally perfect protocols, as illustrated by Arrow's Impossibility Theorem and the Folk Theorems of Game Theory, is addressed by a sys- tem which continually improves protocols and smart contracts to react to changes in the market.

Craig Calcaterra, Wulf A. Kaal, The Importance of Reputation for the Evolution of Decentralization (2021), Consequences of the architecture, p. 8
https://ssrn.com/abstract=3782210 · source PDF

Craig Calcaterra, Wulf A. Kaal, The Importance of Reputation for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782210

• governance systems that must adapt over time

mechanismsupport: arguedinstitutional-designgovernance-design

• extends kaal:claim:3402701-011 The Folk Theorems of game theory imply that no matter how complicated a stable coin protocol becomes, a powerf...
• extends kaal:claim:3402701-036 The Folk Theorems of game theory prove that no protocol, however complex or well engineered, can eliminate cor...
• extends kaal:claim:3782193-011 No set of written rules can be made complete: the Folk Theorems demonstrate that however rules are written, st...
• extends kaal:claim:3402701-007 Good governance principles are crucial to every aspect of a long-term stable currency because markets inevitab...

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